Ohio withholding changed effective September 1st - when will we see a tax update?
Ohio withholding changed effective September 1st - when will we see a tax update?
Agree -- need to write checks tomorrow.
I asked the Online Chat and here was their reply on 3 Sep 21:
Yes so this will be included in the tax update. Unfortunately we do not have an exact date as to when this will be released. But it will likely be before the end of September.
Now I have to decide if I want to edit the tax tables. Sigh.
I thought the point of paying for tax updates was to get tax updates when they were effective.
Agree. Now I have to decide whether to over withhold and know the employees will get it back when they file, or hope my edits to the tax tables are correct. I went to Ohio's tax tables and looked at the rates for the start of 2021 and the new rates. Basically they change from Withhold = [Tax Proration calcs] * 1.032 to Withhold = [Tax Proration calcs] * 1.001. All of the more than xx but not more than yy proration values are the same in both the only thing which has changed is the multiplier from 1.032 to 1.001. ( look at https://tax.ohio.gov/static/employer_withholding/2020%20Tables/WTH_OptionalComputerFormula_2020.pdf and https://tax.ohio.gov/static/employer_withholding/2021tables/2021taxyear/wht-optionalcomputerformula2021.pdf )
Here is Sage's "maintained" tax formula
"For proper withholding, under Maintain, Employees enter the number of exemptions
claimed from Line 4 of Ohio Form IT-4 in the state Allowances box."
R =1.032;
ANSWER = -PRORATE (TABLE (ANNUAL (ADJUSTED_GROSS) -
(EMP_STATE_ALLOWANCES * 650)) * R)-EMP_STATE_NUMBER
I'm going to be brave and change the R=1.032 to R=1.001. I don't need to adjust Sage's "Set up Tax Brackets"
That seems to work.
*Community Hub is the new name for Sage City